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Honda slashes sales forecast for fiscal year 2008

Honda slashed profit forecast for 2008 by almost 62% on December 16th, 2008. Bloomberg also reported -

Honda may report a half-year operating loss for the first time in at least in 11 years, as the global recession cripples sales in the U.S., Japan and Europe. The yen’s 26 percent gain against the dollar and 30 percent rise against the euro this year has hammered Honda’s profit, forcing it to cut jobs, lower management pay and withdraw from Formula One motor racing.

The fear is that the environment is getting worse and with every 1 yen gain vs the dollar and the euro, Honda stands to lose a lot of revenue. Moreover, sales dropped 32% in the US and 34% in Europe, the most since 1981^[1].

1. ↑ [http://www.bloomberg.com/apps/news?pid=20601101&sid=asDCdNdT2a2E&refer=japan

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